Reynolds v. Volunteer State Life Ins. Co.

80 S.W.2d 1087
CourtCourt of Appeals of Texas
DecidedFebruary 8, 1935
DocketNo. 1367
StatusPublished
Cited by29 cases

This text of 80 S.W.2d 1087 (Reynolds v. Volunteer State Life Ins. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reynolds v. Volunteer State Life Ins. Co., 80 S.W.2d 1087 (Tex. Ct. App. 1935).

Opinion

LESLIE, Justice.

On January 12, 1931, the Volunteer State Life Insurance Company of Chattanooga, Tenn., a corporation, took judgment in the [1088]*1088Forty-Second district conrt of Taylor county, against J. G. Reynolds and others in cause No. 8723-A,' for debt and foreclosure of deed of trust lien securing same on 215 acres of land owned by Reynolds. The present suit, instituted in the same court February 4,1033, by Reynolds against said insurance company and others, “sought to have said judgement canceled and * * * the deed thereafter executed by the sheriff to the insurance company set aside as a cloud upon his title,” etc. A trial was had before the court and jury, and at the conclusion of the testimony a verdict was instructed in favor of the defendants, and judgment entered accordingly. Reynolds appeals.

■■ In substance, the suit arises out of the following facts: November' 10, 1928, Reynolds procured . a loan from the Southern Mortgage Company on said land, and executed promissory notes therefor aggregating the sum of $5,350, bearing interest at the rate of 6 per ceht. per annum, etc. In addition; and as part of the same transaction, he executed interest notes aggregating $741, running for different periods of time. The first series of notes were secured by a first lien on the land, and the series of interest notes by second lien. The first series of notes and lien securing them were transferred by the Southern Mortgage Company to the Volunteer State Life Insurance Company, defendant herein, and the second series of interest notes, and the accompanying lien, were transferred to the Mortgage & Security Company, of which Guy Hopkins is receiver.

When Reynolds defaulted in the payment of note No. 1 of the first series, the life insurance company exercised its option, and declared all notes due, and instituted foreclosure proceedings December 18, 1930. It made J. G. Reynolds, his wife Bertie Reynolds, J. J. Chauncey, American Mortgage Corporation, and Guy Hopkins, receiver, defendants in that suit. It procured a judgment for debt and foreclosure, etc., on January 12,1931. The judgment became final and the land was sold under an order of sale, and bid in by the life insurance company, which thereafter sold the land, by warranty deed, to H. P. Ragan who rented same for agricultural purposes to W. K. Van Storey.

As a basis for the instant suit, the plaintiff Reynolds alleges he was never served with citation in said cause No. 8723-A, never entered his appearance therein, nor in any way submitted himself to the jurisdiction of the court, and in the present proceedings he alleges a meritorious defense based upon a contract for usurious interest charged and collected under the terms of the original notes and deeds of trust foreclosed. .The suit is prosecuted upon the theory'that the original judgment is void and subject to the attack herein made. The general nature of the case will be further reflected by other essential facts stated in the progress of the opinion. The attorneys, Lockhart & Brown, representing the appellant in this litigation were in no way connected with the former litigation resulting in the judgment sought to be set aside by this proceeding.

Since the trial court instructed a verdict against the plaintiff, this court takes as true all testimony favorable to the plaintiff. This is elementary and in accordance with the appellant’s first proposition. 3 Tex. Jur. § 741, p. 1049.

The gist of the appellant’s main contention in his attack upon the judgment of the trial court is succinctly stated in the first sentence of the second proposition, wherein he asserts that: “A judgment rendered without appearance by the defendant, and without service of process upon him, is void, and will so be declared when attacked in a direct proceeding, within the period of limitation, and this is the rule although the judgment recites due service.” This proposition is, of course, upon the theory that Reynolds was never served with process in the foreclosure suit, and never formally entered any appearance therein.

. Since propositions 3 and 4 are closely related to the second, and all in a measure based on common facts, they will at this point be stated in substance and considered in connection with the second proposition. The third one is to the effect that a writ of error or appeal from the judgment of foreclosure in cause No. 8723-A was not available to Reynolds, since that judgment recited service of process upon him “and the officer’s return showing there had been no service was not in the papers of the case.” The fourth proposition asserts that since the judgment of foreclosure was void, Reynolds not having been served with process, he “was not required to file a motion for a new trial or to set aside the judgment in cause No. 8723-A at the term of court at which said judgment was rendered, even though he might have had notice of the rendition of said judgment prior to the expiration of the term of court.”

In the consideration of the foregoing propositions, we think there is no controversy about the following facts: The judgment in favor of the insurance company in cause No. 8723-A established the indebtedness against [1089]*1089Reynolds, and foreclosed the deed of trust lien on his land. In that suit he was not served with any character of process, and he made no appearance in the case. That suit was filed December 18, 1930. The judgment against him was taken and entered January 12, 1931. It is regular in form and substance, and recites, among other matters, the following: “On this 12th day of January, 1931, came on to be heard the above entitled and numbered cause, and came the plaintiff and announced ready for trial, and came the defendant Guy Hopkins, receiver of Mortgage & Securities Company of New Orleans, La., a corporation, and filed his answer herein, and the defendant' J. G. Reynolds and wife, Bertie Reynolds, J. J. Chauneey, and the American Mortgage Corporation, a corporation, although having been personally served with citations herein in the manner and form, and lor the length of time required by law, came not, but wholly madé default.”

An order of sale, based on the judgment, issued January 29, 1931. It contained the usual recitals, stating that the judgment was rendered January 12, 1931. It reached the sheriff of Lubbock county, February 4, 1931, and on that date he made levy on the plaintiff’s 215 acres of land. His return shows the' property was advertised for sale March 3, 1931, at which time the land was bid in by the Volunteer State Life Insurance Company, an appellee herein. The notice of sale was published in a newpaper “The Lubbock Morning Avalanche” on February 5, 12, and 19, 1931. The regular January term of the district court of Taylor county, in which the judgment of foreclosure was obtained, convened January 5, 1931, and ended February 28, 1931. As noted, the sale took place on March 3, 1931. .

Soon after December 18, 1930, the date the foreclosure suit was filed, citation therein was served on Reynolds’ wife, and from that he was made aware of the fact that the suit had been filed. Thereupon, he immediately “returned” to Abilene, Taylor county, Tex., to discuss the matter with one Holliday, the agent of the insurance company. At that time, January 2, 1931, said Holliday, in the interest of Reynolds, as well as his company, wrote J. J. Chauneey, of Lubbock, Tex., the following letter:

“Mr. J. G. Reynolds was in to see us this morning with reference to the foreclosure suit now pending against him in behalf of the Volunteer State Life Insurance Company of Chattanooga, Tennessee.

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Bluebook (online)
80 S.W.2d 1087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reynolds-v-volunteer-state-life-ins-co-texapp-1935.